Agencies Seek Comment on Proposed Third-Party Risk Management Guidance

The Federal Reserve, FDIC and OCC are seeking comments on a joint proposal designed to manage risks associated with third-party relationships, including relationships with financial technology-focused entities.
The agencies said the proposal would assist banks in identifying and addressing the risks associated with third-party relationships and responds to industry feedback requesting alignment among the agencies about third-party risk management guidance.

The proposed guidance takes into account the level of risk, complexity and size of the banking organization, as well as the nature of the third-party relationship, the agencies said, adding that it would replace each agency’s existing guidance on the topic and would be directed to all banking organizations supervised by the agencies. Comments on the proposal are due 60 days after publication in the Federal Register.